A hassle-free solution to Brexit negotiations

The equivalence regime could solve the problem of trade between the European Union and the UK

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By

Barnabas Reynolds

August 16, 2017 Updated: 7:59 a.m. GMT

For London’s financial sector, one central question for the Brexit negotiations is how best to continue trouble-free trade with the EU. Current passporting arrangements form part of the Single Market and cannot continue, as they would subject the UK to the EU’s rules, which is politically unsustainable.

This problem has been some years in the making. Europe’s process-based approach to regulation has become increasingly divergent from traditional UK rules, which have favoured outcome-based methods. The EU vision of a single...